In the AU$133 billion Avantis Investors’ first foray into Australia, all three dual access ETFs will seek long-term capital appreciation through investment in actively managed portfolios.
The new funds, now available on Cboe, include the Avantis Small Cap Value Active ETF (AVTS), the Avantis Global Equity Active ETF (AVTG), and the Avantis Emerging Markets Equity Active ETF (AVTE).
Their estimated management fees and costs range from 0.3 per cent (AVTG) to 0.49 per cent per annum (AVTS).
It comes as Mckinsey flagged a structural shift towards active ETFs this year, driven largely by advisers looking to substitute actively managed funds.
Tom Clapham, head of APAC for Avantis’ owner American Century Investments, said the move both broadens the firm’s investment offerings and marks an “important milestone” for business in the region.
“Our team in Sydney is excited to broaden the scope of our offering to professional investors across Australia,” Clapham said.
Eduardo Repetto, Avantis’ chief investment officer, added that Australian investors have expressed interest in the firm’s investment offerings since the company’s launch six years ago.
He explained that the new ETF suite has a dual objective.
On the one hand, it hopes to provide “low-cost, broadly diversified active solutions that empower financial professionals to create value for their clients.”
While on the other, with each strategy accessible via either the ETF or managed fund, it aims to “offer eligible investors the flexibility to choose what’s right for them and their clients”.
Avantis Investors said the ETFs combine the benefits of index investing with the potential for added value, essentially integrating the best aspects of both passive and active management by considering expected daily returns.
Cboe Australia president Emma Quinn said the products demonstrate Cboe’s dedication to “reshaping the ETF landscape” through cutting-edge technology and exceptional client service.
Meanwhile, Equity Trustees has been appointed as the responsible entity of the funds.
Executive general manager of corporate and superannuation at Equity Trustees, Andrew Godfrey, said the firm is “proud” to expand the firm’s long–standing partnership with American Century through the launch of these new ETFs.
“As [the] responsible entity, we are committed to providing strong governance and compliance, enabling American Century to confidently deliver their Avantis investment strategies to investors,” Godfrey said.
